There we have it… the coolest guide EVER on scaling in and out of your trades.
Let’s see how much of this information you have soaked into your noggin.Here’s a quick review of the rules to safely scale in and out of trades.
- Always use stops.
- Only add to losing positions if the risk of your COMBINED positions is within your risk comfort level
- If you add to winning positions, always trail your stop to control the added risk a bigger position size brings.
- Calculate the correct position sizes and where you will add to/remove from your position BEFORE you enter the trade.
- Scaling into winning trades is best applied to trending markets.
- Scaling out works well in range-bound markets.
So now you know the correct way of scaling in and out of trades.
If you want a real-life example of where scaling into a winning position paid off, check out this long EUR/JPY setup that Cyclopip took! He was swimming in pips afterward!